The penalty—now a tax—for failing to purchase insurance in 2014 is $95–for the entire year. That is far less than the monthly insurance premium even young healthy people would pay. It rises to $695 in 2016, or 2.5 percent of income, and increases with inflation thereafter. For a young person trying to afford rent and pay a student loan, the decision is clear. Delaying an insurance purchase is money in the bank, and the tax is too small to matter.